China Securities Regulatory Commission (CSRC) stepped in the case that a video content sartup turned to Tabao, the C2C e-commerce platform, for crowdfunding.
Make. V is required not to sell shares online any longer. CSRC also asks the company to make a public statement acknowledging that a limited liability company like it is not qualified to raise funds from so many investors. Zhu Jiang, founder of Make.V, said that the statement was for letting the public know they were not allowed to do so, “CSRC fears that the market would go wrong if our company, the first, is allowed to do so.”
However, CSRC didn’t punish Make.V. The company is rquired to refund only 380 thousand yuan, one tenth of the total (3.87 million yuan) it raised.
As the hype is seen more of a marketing campaign, Zhu Jiang acknowledged that, besides fundraising, they were meant to introduce more investors to help spread the word given the video content they are producing needs audience at the end of the day.
image credit: insta-pro